Labor and Material Prices Slowly Increase in Second Quarter 2012 According to Turner Building Cost Index Market Activity and Competition Result in Modest Escalation in Cost of Construction
NEW YORK, June 12, 2012 /PRNewswire/ -- Turner Construction Company announced that the Second Quarter 2012 Turner Building Cost Index – which measures costs in the non-residential building construction market in the United States – has increased to a value of 826. This reflects a 0.61% increase from the First Quarter 2012 and 1.85% yearly increase from the Second Quarter 2011.
Karl F. Almstead, the Turner vice president responsible for the Turner Building Cost Index, said, "Optimism for growth in Turner's markets in the United States is balanced by uncertainty in the global economy. This has resulted in a relatively stable level of market activity. In spite of pressure from competition, labor and material prices slowly continue to increase."
Approximately 90% of Turner's business is performed under contract arrangements where Turner provides extensive preconstruction planning services before the contract price is fixed and before construction starts. By providing preconstruction services and utilizing enhanced procurement strategies, Turner effectively manages the market risks associated with cost-related issues.
Turner has prepared the construction cost forecast for more than 80 years. Used widely by the construction industry and Federal and State governments, the building costs and price trends tracked by the Turner Building Cost Index may or may not reflect regional conditions in any given quarter. The Cost Index is determined by several factors considered on a nationwide basis, including labor rates and productivity, material prices and the competitive condition of the marketplace. This index does not necessarily conform to other published indices because others do not generally take all of these factors into account.
About Turner Construction Company
Turner is the leading general builder in the U.S., ranking first or second in the major segments of the building construction field. Turner annually completes $8 billion of construction. Founded in 1902, the firm is a subsidiary of HOCHTIEF, a publicly traded company and one of the world's leading international construction service providers. For more information, visit www.turnerconstruction.com.
HOCHTIEF is one of the leading international providers of construction-related services. With more than 75,000 employees and a sales volume of EUR 23.28 billion in FY 2011, the company is represented in all the world's major markets. The Group's service offering in the fields of development, construction and operation covers the entire life cycle of infrastructure projects, real estate and facilities. In the USA, the biggest construction market in the world, HOCHTIEF is the No. 1 general builder via its subsidiary Turner and, with Group company Flatiron, ranks among the most important players in the field of transportation infrastructure construction. With its subsidiary Leighton (HOCHTIEF share around 54 percent), the Group is market leader in Australia. Because of its engagement for sustainability, HOCHTIEF has been listed in the Dow Jones Sustainability Indexes since 2006. Further information is available at www.hochtief.com/press.
SOURCE Turner Construction Company